The Impact of Power

Management on Building
Performance and Energy Costs

by Mark A. Chidichimo and Aubrey Oates

Executive summary
Power quality and energy consumption are closely
linked to overall building performance. Yet building
managers often focus more on mechanical equipment
operations. However, power problems are responsible
for more than half of equipment downtime in most
buildings. This paper reviews how adding power
management to BMS capabilities can reduce energy
costs and improve building performance while also
enhancing occupant comfort.
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 The Impact of Power Management on Building Performance and Energy Costs

Introduction Power and energy management systems have long been used in power critical
applications like industry, data centers and hospitals. Advances in technology now make
it easier to utilize such tools in commercial buildings, and at an affordable cost. The
benefits of adding power and energy management systems functionality into existing
Building Management Systems (BMS) include lower maintenance costs, reduced energy
consumption, increased equipment life span, and higher occupant comfort and
productivity.

Energy use is an obvious target for improvement in building environments: 42 percent of

1
the world’s energy is relegated to buildings. By some estimates, most of that energy –
2
anywhere from 54% to 71% – is consumed by the heating, cooling and lighting systems.

In addition, there is growing evidence that environmental conditions inside a building

have a significant effect on worker performance and customer satisfaction. Research by
3
the World Green Building Council finds that employee productivity increases by 11%
from better ventilation, and by 23% from better lighting. A 4% reduction in employee
performance in cooler temperatures and a 6% performance reduction in warmer
temperatures have also been observed.

Most buildings have been outfitted with automated Building Management Systems (BMS)
that allow for centralized monitoring and control of heating, cooling, and related
ventilation systems. These systems provide building owners and facility managers with a
comprehensive view of the mechanical system. However, many of building system
managers do not leverage the potential of the system to monitor the electrical system as
well.

Power problems are responsible for more than half of equipment downtime in most
4
buildings. This paper discusses how adding power management to BMS capabilities
can reduce overall energy costs and improve performance of equipment and buildings,
while also enhancing occupant comfort.

Figure 1
Global electricity net
consumption (courtesy of
US Energy Information
Administration, 2012)

1
http://www.iea.org
2
www.nationalgridus.com/non_html/shared_energyeff_office.pdf
3
“The Business Case for Green Buildings” World Green Building Council, 2013
http://www.worldgbc.org/files/1513/6608/0674/Business_Case_For_Green_Building_Report_WEB
_2013-04-11.pdf
4
J. Manson, R.Targosz, “European Power Quality Survey Report”, Leonardo Energy, 2008.
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 The Impact of Power Management on Building Performance and Energy Costs

Power monitoring is a fundamental enabler of reduced energy consumption and lower

Why power building CO2 emissions. The monitoring technology can be applied to measurement of
monitoring is water, air, gas, electricity and steam (WAGES) usage. A monitoring strategy can employ
a variety of measurement techniques and many types of measurement devices.
relevant Regardless of the specific monitoring strategy, the fundamental outputs include
measurement, calculation, collection, display, and sharing of energy data. The
information gathered is consolidated in order to make informed business decisions
related to energy spend.

Most building operators engage in basic power monitoring, which analyzes the kilowatt
hours of energy consumed. This consumption is measured at the main meter and
sometimes through additional meters installed around large loads. The information
gathered is helpful but limited.

For example, a facility manager might know a chiller is running more than it should (and
consuming X amount of energy), but he would have no visibility to the underlying issue
that is driving the higher consumption. As a result, the facility manager may need to send
in maintenance crews to investigate. If the chiller is failing for some mechanical reason,
they would be able to fix it. However if the problem is a power quality issue, this may
result in guesswork and money could get wasted on fruitless repair efforts, and / or result
in unnecessary equipment wear.

Power Power monitoring is a specialized discipline focused on managing electrical distribution

systems in order to maximize the efficiency and reliability of a facility’s electrical
monitoring infrastructure. It utilizes electrical power metering devices to measure the quality and
primer quantity of power flowing through a given part of the electrical system. It functions much
like a BMS, but instead power management helps identify which building systems or
pieces of equipment are contributing the most to electrical energy waste. Power
monitoring maximizes efficient day-to-day operations by providing visibility into the real-
time properties of a building’s electrical supply.

Power monitoring enables building management, operations and maintenance teams to

see how different building systems and equipment affect the electrical system. It also
highlights how different systems and equipment affect each other. This visibility allows
facilities staff to detect and resolve problems more quickly, minimize electrical waste, and
operate the building more efficiently.

Power management helps to answer the following questions:

• Where is power being used?

• Does the power use signify equipment problems or maintenance needs?
• Is the utility billing correct?
• What does analysis of power consumption reveal?
• Is there a problem with power quality in the building?
• How do similar buildings compare in their power consumption and what do the
variations signify?

Given that HVAC and lighting systems, which consume more than half of a building’s
energy, are affected by power, it makes good business sense to incorporate power
monitoring and management.

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 The Impact of Power Management on Building Performance and Energy Costs

Power There are multiple advantages to monitoring and managing power consumption and
quality. Following are some examples of how power management can reduce costs,
management enhance performance, and improve occupancy comfort:

benefits • Maximized equipment performance - Power problems such as transients, swells,

and under/over voltage can have a harmful effect on HVAC equipment. A large
motor drawing unbalanced power will run hot or inefficiently, leading to wasted
power and possible equipment breakdown. Power quality management identifies
the problem early so that damage and downtime can be minimized.

• Avoided loss of capacity - Harmonic distortion, a power problem caused by non-

linear loads, is a common electrical problem that can cause damage to electrical
components. In the case of a transformer, for example, a mere 5% harmonic
distortion can result in a 25% loss of capacity. A power quality monitoring system
allows for the setting alerts on key equipment so that notifications are sent out
when harmonic distortion exceeds a certain level.

• Verified energy bills - The majority of energy billing errors occur on the
administration side of the utility, not the meter. Most facilities receive a bill that only
A new opportunity provides a bottom line power usage figure and provides no means for the user to
for efficiency in verify. Power management provides the intelligence to read kilowatt hours and
buildings with compare with tariffs published in the contract. Information such as power usage
non-critical power peaks, overall usage, and time of use are all detailed.

needs
• Tracked electrical loads - Tracking load profiles through a power management
Traditionally, power system can identify early signs of trouble. For example, a typical power load might
management has been used peak at midday and drop off at the end of the day and on weekends. If that profile
in facilities such as hospitals changes, it may indicate a problem. A compressor might be malfunctioning, or an
and data centers where
power use and availability are
employee might be leaving an electrical heater on overnight. The power
highly critical. The fact is, management system will be able to track down the cause and correct it before the
nearly half of the world’s problem becomes severe.
buildings are non-critical,
such as educational
campuses, retailers and office • Managed assets and capacity - Power management improves overall asset
buildings (“Global Building
management and avoids catastrophic failure. In a typical scenario bearings may
Stock Database, 2011-2021,”
Pike Research, 2014). Now begin to show signs of wear or chiller motor might be in need of repair. This can be
building owners and detected on the mechanical side because in-flows might be less efficient. The
operators of less critical usual response is to crank up the system. However, when can be observed via
buildings can use power changes in the electrical profile, the problem can be identified earlier and with more
management embedded with
accuracy and appropriate actions can be taken earlier.
BMS for HVAC systems to
create business value and
positive ROI.
• Facility comparisons – The increase of high quality information from the power
monitoring system allows for more accurate comparisons between various facilities
and campuses. For example, it might appear that a particular maintenance team is
performing below par (due to higher costs, poorly functioning equipment), but
examining power consumption and quality might reveal that the problem is in the
power, not in the people.

• Applied analytics - Power monitoring produces large amounts of data. This data
can be mined with analytics to reveal hidden trends that are not visible in common,
everyday reports (such as hard-to-see correlations between power and equipment).
Analysis requires specialized professionals with specific competencies in power
quality, electric installation and equipment, who are capable of correlating power
quality disturbances with equipment damage, malfunction, or electrical installation
downtime. This capability may be provided by the BMS vendor, and can even be
embedded to some extent in the BMS dashboards.

See the Appendix for a complete list of power quality problems, their impact and their
causes.

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A power management system can operate either as stand-alone or embedded within a

System BMS depending on budget and needs. Such systems consists of meters for monitoring
components power consumption and quality; software for viewing, reporting and analyzing power
usage; and integration (optional) with building management systems to provide a unified
and holistic view of facilities.

Meters
Power meters measure the quality and quantity of power flowing through a given part of
the electrical system. There are many types of power meters available, but they can be
divided into two general categories: power consumption meters and power quality
meters.

• Power consumption meters measure the quantity of energy flowing through a

system. They correlate energy use to equipment performance, and identify energy
consumption trends. They also identify anomalies in energy use that could signify
developing problems, and verifying energy bills. These meters can be installed in
one or two locations for basic energy monitoring, or throughout a facility. For
example, they could be installed near key equipment components such as chillers
and boilers. At the very least, a meter should be placed at the main power incomer.
• Power quality meters monitor the quality of the power, not just the quantity. Most
consumers assume that power flows into a building like water would flow through a
faucet. In reality, a variety of power quality anomalies exist such as voltage dips,
harmonics, and transients, all of which can have negative impacts on electrical
systems and equipment. These impacts include power outages, damaged devices,
equipment overheating, equipment failure, degraded performance, and reduced
equipment life.

From 30 to 40% of all unscheduled HVAC downtime is related to power quality problems
5
and up to 80% of the time these disturbances are generated by user-owned equipment.
As with power consumption, power quality can be measured in one location or many,
depending upon the needs and constraints of each building.

Figure 2
Power meter selection
example

Power meters are available with different combinations of the capabilities (see Table 1
for a partial description). A power management consultant can help determine which
meters are appropriate given the configuration of the facility and the available budget.
For more information on common power meters applications and the best meter for each
need, please refer to the Power Meter Selection Guide for Large Buildings.
5
J. Manson, R.Targosz, “European Power Quality Survey Report”, Leonardo Energy, 2008
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 The Impact of Power Management on Building Performance and Energy Costs

Incomer Meters Feeder Meters Panelboard Meters

Monitor connection points with external Monitor main distribution Monitor power distribution
Table 1 utility or local power sources, such as circuits from the main electrical panels (distribution panels,
Examples of different solar, wind and distributed energy switchboard in a large building, panel boards, sub-panels, etc.)
types of meters resources or the main distribution feeder throughout a panel that serves
from a campus substation. Also non-critical loads.
recommended for circuits with
important loads or specialty
equipment

Power management software

Stand-alone software - In a stand-alone application, power management software
provides centralized visibility of power use and how it relates to equipment performance
and longevity. This software can be simple or quite advanced. Capabilities can include
dashboards for real-time visibility of energy use, alerts for out-of-norm conditions, reports
for compliance and management reviews, comparisons across facilities, and analytics for
deeper insights.

Software integrated with BMS - Power management can be embedded in a building

management system to provide a single, unified view of building operations. This results
in convenience and efficiency if non-electrical personnel will need to view and act on the
power information that is made available. In addition, an embedded system makes
expert-level power information accessible to mechanical systems staff for a simplified and
holistic picture of the building operations.

Power management linked to BMS helps both electrical and mechanical systems to run
together better. Mechanical and electrical systems traditionally reside in separate data
and operational silos. When power management is embedded into a BMS, managers can
monitor electrical systems in the same way they manage HVAC systems, with a single
set of data, alerts and reports. Such an integrated system makes it faster to determine if
the root cause of an equipment problem is due to a mechanical issue or to an electrical
issue.

Figure 3
Example of power
management software
dashboard showing electrical
network health summary

Deployment A power management system can be deployed all at once, or phased in over time. The
ability to phase in power management makes it affordable for owners and operators
actions tasked with improving building performance.

As a first step, stakeholders need to identify the core areas that need to be measured
(see Table 2). If accuracy of energy bills is a concern, meters should be placed at the

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 The Impact of Power Management on Building Performance and Energy Costs

incomer. Placing meters in this location allows monitoring of the power supply and could
detect whether problems are coming from the energy provider or are being generated
onsite. If equipment performance is the main issue, meters should be added to chillers,
boilers, air handling units, and / or pumps. If the priority is to segment or compare
different tenants of departments in a given building site, sub-metering should be set up to
better understand compartmentalized power usage.

In addition to measurement, the power data that is gathered also needs to be analyzed.
An embedded power and energy management system organizes the information into
comprehensive, easy-to-understand actionable reports, dashboards, and graphics. This
helps mechanical experts and facility managers to make faster, more informed decisions.

Power management requires the establishment of a power policy, as well as defining a

baseline, planning of monitoring activities, and performance reviews.

Checklist of considerations Yes / no

Power quality symptoms affecting facility identified

Power management system already in place

Power management shortcomings identified

Utility company billing includes penalties for poor power factor

Power use being measured

Monthly energy bill has been validated

Table 2
A review of existing power Power meters are installed
management is a first step to
Types of power meters installed are identified
improving building
performance improvements Power data is being shared across departments

Electrical power stakeholders within the organization have been identified

Power reports required have been identified

Age of equipment has been identified

Current efficiency measurement methods have been identified

Current energy expenditures have been quantified

Energy bill has been audited

Energy use adjustment methods have been identified

Power system and building management system are integrated

A systematic program for power management should include the following steps:

• Establish baselines by understanding the variations and patterns that define

"normal operations"
• Set targets/thresholds for proactive notification and exception reporting
• Investigate possible causes of abnormal trends
• Collect information for diagnosis and troubleshooting and propose a response
• Implement a response to the identified problem. Determine which that response
should be adaptation/change, mitigation, or equipment replacement

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 The Impact of Power Management on Building Performance and Energy Costs

• Establish a procedure for reporting events at the enterprise level, to aid in

consistent asset management and development of best practices

Each facility has its own specific power issues, depending on the installed loads,
equipment, and the quality of supplied energy. Options to addressing power issues may
include add-on equipment that mitigates the power disturbances; modification of settings;
design and architecture changes; or even selection of new equipment that is less
sensitive to power disturbances.

Most building owners with non-critical power needs have some power monitoring
Conclusion equipment (such as meters) in place, but do not have electrical experts on staff to
interpret the energy data that is gathered. Yet they still want visibility into their electrical
system for better incident response times and lower energy spend.

Energy use is a major facilities management concern, and buildings have been identified
as the largest energy consumers. Yet most building owners and operators fail to measure
and manage power. Even BMSs only partially address this issue.

The power system can have a major impact on HVAC efficiency and reliability, as well on
energy use and costs. An investment in power meters, when linked with a BMS, provides
much-needed visibility into how power relates to equipment performance. Readers
interested in delving more deeply into the electrical issues involved are referred to the
Schneider Electric white paper “Framework for Implementing Continuous, Iterative Power
Quality Management”.

With proper planning, facilities managers can leverage power management to improve
energy use, enhance occupant comfort, reduce maintenance costs and emergencies,
and continuously optimize building performance.

About the authors

Mark A. Chidichimo is an offer manager for Schneider Electric’s Partner Business in
the Power Solutions, Software & Systems organization focused on Global Power
Solutions and Buildings. With Schneider Electric since 2006, he previously held roles
in offer creation, marketing strategy, business development, and program
Schneider Electric. All rights reserved.

management, and he is a regular blogger on data center space. Mark holds a Master
of Business Administration from the University of Calgary, Canada, and a Bachelor of
Science degree in Mechanical Engineering from the University of Illinois, Champaign-
Urbana.

Aubrey Oates is Marketing Programs Manager for Schneider Electric’s EcoBuilding

Division. She is responsible for global product and process implementation for
building management systems, including Power Manager for SmartStruxure solution.
A frequent blogger on a building management professional’s journey from “energy
enthusiast” to “energy expert,” Aubrey has also held roles in technical writing and
marketing since joining Schneider in 2008. She holds a Bachelor of Arts degree in
Communication from Purdue University in Indiana.
© 2015

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 The Impact of Power Management on Building Performance and Energy Costs

Appendix

Disturbance
category: Short Effects Possible causes
term
Transients Lightning or switching of
Equipment malfunction and damage
inductive / capacitive loads

Interruption Downtime, equipment damage, loss of data Utility faults, equipment

possible failure, breaker tripping

Sag Utility or facility faults, startup

Downtime, system halts, data loss
of large motors

Swell Equipment damage and reduced life Utility faults, load changes

Disturbance
category: Long Effects Possible causes
term
Load changes, overload,
Undervoltage Shutdown, malfunction, equipment failure
faults

Load changes, faults, over

Overvoltage Equipment damage and reduced life
compensation

Equipment damage and reduced life, nuisance Electronic loads (non-linear

Harmonics breaker tripping, power losses loads)

Unequal distribution of single

Unbalance Malfunction, motor damage
phase loads

Voltage Load exhibiting significant

Light flicker and equipment malfunction
fluctuations current variations

Power frequency Standby generators or poor

Malfunction or motor degradation
variations power infrastructure

Increased electricity bill, overload, power Inductive loads (ex. motors,

Power Factor * losses transformers...)

* Not defined as a power quality problem from standards perspective, but considered as
a power quality problem from end-user perspective.

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